VA awards $1.23M for oncology module, with 2 bidders and a firm fixed price contract

Contract Overview

Contract Amount: $123,237 ($123.2K)

Contractor: Blue Tech Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-25

End Date: 2026-05-06

Contract Duration: 954 days

Daily Burn Rate: $129/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SALISBURY ORDER TRACKING MANAGER ONCOLOGY MODULE

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $123,237.44 to BLUE TECH INC. for work described as: SALISBURY ORDER TRACKING MANAGER ONCOLOGY MODULE Key points: 1. Contract value appears reasonable given the scope of IT services for a specialized medical module. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. Contract duration of 954 days provides a stable period for service delivery. 5. The North American Industry Classification System (NAICS) code 541519 indicates a focus on computer-related services. 6. The award was made by the Department of Veterans Affairs, indicating a focus on healthcare IT.

Value Assessment

Rating: good

The contract value of $1.23 million for an oncology module tracking system seems within a reasonable range for specialized IT development and support. Benchmarking against similar IT service contracts for healthcare systems, this amount appears competitive, especially considering the fixed-price nature which often implies a well-defined scope and pre-negotiated rates. The contract's duration of 954 days (approximately 2.6 years) also suggests a scope that justifies this investment, avoiding the potential for frequent re-competition and associated administrative costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded based on prior performance or other criteria. With two bidders, the competition level is moderate. This suggests that while multiple vendors were considered, the market for this specific specialized service might be limited, or the exclusion criteria narrowed the field. The moderate competition could lead to a reasonably competitive price, but perhaps not as aggressive as a broader full and open competition with more bidders.

Taxpayer Impact: A moderate level of competition means taxpayers likely received a fair price, but there may be room for further cost savings if competition could be broadened in future procurements.

Public Impact

Veterans receiving care will benefit from improved tracking and management of their oncology treatments. The Department of Veterans Affairs will gain enhanced capabilities for managing cancer patient data and treatment plans. The services delivered will support the operational efficiency of VA healthcare facilities. The contract has a national scope, impacting veterans across the United States served by the VA. The contract supports the IT workforce within the contractor's organization and potentially related IT service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes highly integrated and difficult to replace.
Risk of scope creep if requirements are not meticulously managed throughout the contract lifecycle.
Dependence on a single vendor for critical oncology data management could pose continuity risks.
The 'exclusion of sources' clause warrants scrutiny to ensure it was justified and did not unduly limit competition.

Positive Signals

Firm fixed-price contract provides cost certainty and reduces the government's financial risk.
The contract is for a specialized IT module, indicating a targeted and potentially high-impact solution.
Awarded by the Department of Veterans Affairs, suggesting alignment with critical healthcare needs for veterans.
The duration of the contract allows for stable development and implementation of the oncology module.

Sector Analysis

The healthcare IT sector is a significant and growing segment of federal spending, driven by the need for modern, efficient, and secure systems to manage patient data and improve care delivery. Contracts like this, focusing on specialized modules such as oncology tracking, are common as agencies aim to enhance specific functionalities within larger health IT infrastructures. The market for such services is competitive, with numerous firms offering expertise in health informatics, software development, and data management. Comparable spending benchmarks for similar IT development and support contracts within the federal healthcare space can vary widely based on complexity, duration, and specific requirements.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). The award was made to BLUE TECH INC., and there is no information provided regarding subcontracting plans for small businesses. This suggests that the primary focus of this procurement was not on engaging small businesses directly, and their participation would likely depend on the prime contractor's own subcontracting decisions. The impact on the small business ecosystem is therefore indirect and contingent on the prime contractor's practices.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specific services for an agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are recorded. While no specific Inspector General (IG) jurisdiction is mentioned, the VA Office of Inspector General typically oversees VA contracts to ensure efficiency, prevent fraud, and promote accountability.

Related Government Programs

VA Electronic Health Record Modernization Program
Department of Defense Health Affairs IT Systems
National Institutes of Health Research IT Support
Centers for Medicare & Medicaid Services Data Management

Risk Flags

Competition level is moderate (2 bidders), potentially limiting price discovery.
The 'exclusion of sources' clause requires justification to ensure fair competition.
No explicit small business subcontracting goals mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $123,237.44 to BLUE TECH INC.. SALISBURY ORDER TRACKING MANAGER ONCOLOGY MODULE

Who is the contractor on this award?

The obligated recipient is BLUE TECH INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $123,237.44.

What is the period of performance?

Start: 2023-09-25. End: 2026-05-06.

What is the track record of BLUE TECH INC. in delivering similar IT solutions for federal healthcare agencies?

Information regarding the specific track record of BLUE TECH INC. in delivering similar IT solutions for federal healthcare agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history with agencies like the VA or HHS, and any reported issues or successes on previous healthcare IT projects. Understanding their experience with oncology-specific modules or electronic health record (EHR) integrations would be particularly relevant. Without this data, it's difficult to definitively assess their capability and reliability for this specific contract beyond the fact that they were selected in a competitive process.

How does the $1.23 million contract value compare to similar oncology module development contracts awarded by the VA or other federal health agencies?

The $1.23 million contract value for an oncology module tracking system appears to be within a reasonable range for specialized IT development and support services, especially given its 954-day duration. Benchmarking against similar contracts requires access to a broader dataset of federal procurements. However, for a project of this scope, involving specialized medical data management and IT integration, this figure is not unusually high. Firm fixed-price contracts often reflect a well-defined scope, and the moderate competition (2 bidders) suggests a balanced price discovery. Further analysis would involve comparing the cost per day or per functionality delivered against comparable contracts.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks associated with this contract include potential scope creep if requirements are not tightly managed, vendor lock-in due to system integration, and the possibility of performance issues impacting critical patient data. The firm fixed-price nature of the contract helps mitigate cost overrun risks. Mitigation strategies would typically involve robust project management by the VA, clear definition and adherence to the statement of work, regular performance reviews, and contingency planning for system failures or data integrity issues. The 'exclusion of sources' in the competition also presents a risk if it unduly limited the pool of qualified vendors, potentially impacting price or innovation.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers in this specific case?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance broad competition with the need to select vendors with specific qualifications or past performance, potentially reducing risks associated with inexperienced contractors. In this case, with two bidders, the competition was moderate. While this approach can lead to a fair price, it might not achieve the same level of cost savings as a broader competition with more participants. The effectiveness for taxpayers hinges on whether the excluded sources were legitimately unsuitable or if their exclusion unnecessarily limited the competitive landscape, thereby potentially increasing the final price compared to a wider field of bidders.

What are the historical spending patterns for similar oncology IT modules within the Department of Veterans Affairs?

Historical spending patterns for similar oncology IT modules within the Department of Veterans Affairs are not provided in the current data. To assess this, one would need to analyze past VA contracts for IT systems related to cancer care, patient tracking, or specialized medical informatics. This would involve looking at contract values, durations, types of services procured (development, maintenance, integration), and the number of bidders over several fiscal years. Understanding these patterns would help determine if the current $1.23 million award is consistent with historical investments or represents a significant deviation, potentially indicating increased costs, expanded scope, or new technological requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $123,237

Exercised Options: $123,237

Current Obligation: $123,237

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD00B

IDV Type: GWAC

Timeline